Disney Paid Zero Federal Income Tax on $8.3 Billion in 2025, Report Finds
An April 2026 ITEP analysis attributes the outcome to R&D write-offs, an expanded export break, stock‑option deductions.
Overview
- A new ITEP report in April 2026, drawing on SEC tax disclosures, says Disney reported $8.3 billion in U.S. pretax income for 2025 yet owed $0 in federal corporate income tax.
- ITEP says Disney erased its bill by pairing immediate write-offs for research costs, a larger break for profit from foreign customers, and big deductions created when executives exercised stock options.
- The analysis places Disney among at least 88 profitable companies that together logged over $105 billion in U.S. pretax income, would have owed about $22.1 billion at the 21% rate, and instead received $4.7 billion in rebates.
- Researchers link these outcomes to the 2017 Tax Cuts and Jobs Act and the 2025 One Big Beautiful Bill Act, which retroactively expanded the export deduction and allowed full, immediate expensing of research.
- Because many states mirror federal tax rules, ITEP estimates the zero‑tax group faced an average state corporate rate near 1.4%, reducing revenue for schools, infrastructure, and public safety while staying within current law.